AboutAl Romero, Ltrs. Expertise I can answer questions relating to general Real Estate in Pennsylvania including questions relating to Real Estate Investments and Landlord issues. I cannot delve out of my expertise ie;as in the practice of Law.
www.yorkhomeguide.com
Experience 5 years as an Investment property Advisor with a local Investment firm and 3 years of general practice.
Organizations National Realtors Association
R.A.Y.A.C
Pennsylvania Realtors Association
H.A.R
Publications york listings
Central Pa Real Estate Investors guide
Education/Credentials Center of Real Estate Law and Sales Practice.
Ltrs certified.
housevalues agent certification.
Expert: Al Romero, Ltrs. Date: 5/9/2007 Subject: Capital Gains Tax on Real Estate
Question My mom owns 8 acres of farmland in Berks County that she bought from her father for about $3000 at least 10 years ago. She lived in the farmhouse (as did I) that the land was a part of for more than 20 years, but did not own it. She would like me to have the acreage but we're not sure of the best way to do it (i.e., pay the least amount of taxes). I would most likely sell it and use the money for a down payment on a house. The land was assessed in 2003 for $129,000. Could you please tell us the best course of action to pursue?
Answer Gabe,
If she lived on the property for 3 of the last 5 years of the sale or transfer date, she will not incur capital gains tax upto $250,000.So if she transferred it to you she would not incur the tax. Now if you on the other hand sold it immediately without living in the property for the amount of time needed ,you would incur a hefty capital gains tax.
